The U.S. Securities and Exchange Commission charged the City of Harrisburg with securities fraud for releasing misleading public statements, the charges include the 2009 City of Harrisburg budget, from the SEC report.

" By the time the 2009 budget was passed, Harrisburg was aware of the Authority’s projected budget deficits and that Dauphin County was challenging a rate increase. As a result, the Authority was unlikely to have sufficient revenues to pay its 2009 debt service obligations. However, Harrisburg’s 2009 budget as adopted did not include funds for debt guarantee payments. The 2009 budget also misstated Harrisburg’s credit as being rated “Aaa” by Moody’s when in fact Moody’s had downgraded Harrisburg’s general obligation credit rating to Baa1 by December 2008."

Archive video of former mayor Steve Reed presenting the 2009 proposed budget:We shall end 2008 with a surplus."

Steve Reed Part 2 "The City of Harrisburg again received for the 20th consecutive year the certificate for achievement of excellence in financial reporting."

Steve Reed Part 2 We will end this year with a 2.4 million dollar surplus.

The SEC Order: ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTION 21C